Donald Trump Calls for Interest Rate Cuts Amid Positive Signs in the Labor Market

President Trump once again urged interest rates to be lowered after upbeat US jobs data. Some analysts hope that the new interest rate cut will create a positive momentum for Bitcoin. However, there are no signs that Powell will change his decision. If there are, the likelihood is even lower. Tariffs could cause unprecedented chaos and the economy currently does not need to cut interest rates to survive. Can Trump Force a Cutting Down of Interest Rates in the United States? Today, the U.S. Bureau of Labor Statistics released the latest jobs report, which seems quite optimistic amid concerns about an economic downturn. The total number of non-farm jobs increased by 177,000, exceeding expectations, while the unemployment rate remained stable and wages increased. This has led President Trump to once again call for cutting down the whales:

President Trump has repeatedly urged Federal Reserve Chairman Jerome Powell to cut interest rates. The cryptocurrency industry has also strongly supported this move, which would encourage investment in riskier assets. However, both Powell and other senior Fed officials have made it very clear that tariffs are too unpredictable to continue cutting interest rates. Powell's viewpoint is very consistent. Tariffs can cause serious harm to the economy, and the Federal Reserve needs to keep a reserve of funds to prevent a collapse in the future. If interest rates are cut following optimistic news, the Fed will have less of a potential tool in the event of a real crisis. Trump even threatened to fire Powell over the issue of cutting down the whales, but backed down after the market panicked. He could not legally fire Powell; removing such a prominent regulator would certainly cause chaos. After the jobs report was released, the market predicts there will be fewer rate cuts and CME reports that an adjustment in May is virtually impossible.

To put it bluntly, the likelihood that Trump will soon achieve the desired level of interest rate cutting is very low. Justin Wolfers, an economist at the University of Michigan, explained why the optimistic report actually makes the possibility of interest rate cuts less likely: "I am almost certain that the Fed will remain the same position at the next meeting. The real economy (cho to nay) strong enough to not need to cut interest rates. And the big questions are just on the horizon. Powell made it clear: He didn't want to guess what's on that horizon, he wanted to wait and see. The report is completely legal. The White House's interpretations are another matter," he said. President Trump wants to cut this interest rate, but cannot force it without causing a bigger problem. Because tariffs are very chaotic and unpredictable, false rumors have shaken the cryptocurrency market on several recent occasions. Traders should be cautious of speculation that seems too good to be true.